Straits Taylor Rule:
i = r* + π* + 1.5(π−π*) + 0.5(y−y*) + α(SOH−SOH*) + β(BEM−BEM*), α,β > 0
Let’s see if a hike could open SOH or produce a single barrel :)
You can’t 25bp a chokepoint and r* isn’t neutral. It’s SOH risk premium, and We set it.
Stay unanchored !